Investor · Tampa, FL · Member since 2015 · 24 posts · 4 votes
Hi Bp I want to take your opinion on one of my deals, I have a home I did a lot of renovations to it I want to sale for at least $ 100000 put appraisal coming at $77000 do to the lack of comparable in that neighborhood, most sold homes are in need of massive renovation and appraisers are not considering a true value of the coast involve, am all cash in this deal, I was going to lease it for about $1250 a month, but know am thinking other options I never done before and don't have a lot of information on them. Which one would you do and why 1- Lease option 2-Owner finance. 3-rent to own Thanks
First a couple of questions..
1. How many appraisals have been done?
2. What type of appraisal? For what purpose?
There is the chance that you can fight the appraisal! Or pay for your appraisal to consider the work you've done.
thanks Jorge for fast respond, I had the home for sale for $109000 I had about 15 showing in I week got about 5 offers I chose 1 of them for $100000 and know after 30 days into the contract the appraiser came in $77000 based on the best comparables in that neighborhood I can't sell it at that price, I try to talk to the appraiser and he said he can't talk to me since I didn't hire him if I have any better comparables to send it to the buyers bank then he will use it which I don't have, as far as renovation he said he have used the fair coast on it which I disagree
If you're needing to pull cash out of the house, look into doing a cash out refi, but in most cases you'll only get 70-75% of what the house appraisers for.
Personally I like the lease option. You get a decent up front payment, cash flow on the property while paying down the mortgage (if you have one) and then at the end of the lease, if they can get qualified for a loan then you sell your house. If not, they forfeit the option payment as it's non-refundable. Check all your state laws and talk to an attorney.
But a lease option would be a good scenario if you expect the neighborhood properties to increase in value over the next year or two so you can sell it for the $100k or so.
You can also challenge the appraisal, if you think the comps used aren't relative to your house, and talk to the bank about doing a 2nd one with a different appraiser.
thanks drew you guys are awesome what is typical for down payment on a lease option and what percentage of the monthly payment usually goes towards the balance how would you set it up if the sale price is $100000, fair market rent is $1250 and would you put it on mls what is the normal compensation for the realtor on lease option
thanks drew you guys are awesome what is typical for down payment on a lease option and what percentage of the monthly payment usually goes towards the balance how would you set it up if the sale price is $100000, fair market rent is $1250 and would you put it on mls what is the normal compensation for the realtor on lease option